Walmart Inc (WMT)
Profitability ratios
Return on sales
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.85% | 24.38% | 24.14% | 25.10% | 24.83% |
| Operating profit margin | 4.31% | 4.17% | 3.34% | 4.53% | 4.03% |
| Pretax margin | 3.86% | 3.37% | 2.78% | 3.26% | 3.68% |
| Net profit margin | 2.85% | 2.39% | 1.91% | 2.39% | 2.42% |
Walmart Inc's profitability ratios have shown some fluctuations over the past five years. The gross profit margin, which measures the percentage of revenue retained after accounting for the cost of goods sold, has ranged between 24.14% and 25.10%. This indicates that Walmart has been able to effectively manage its direct costs of production and distribution.
The operating profit margin, representing the percentage of revenue remaining after deducting operating expenses, has varied from 3.34% to 4.53%. Although there was some volatility, the trend seems to be positive, reflecting Walmart's ability to control its operating costs efficiently.
The pretax margin, which shows the percentage of profit earned before taxes, has fluctuated between 2.78% and 3.86%. This ratio indicates the company's ability to generate profits from its core business activities before considering tax implications.
Finally, the net profit margin, which reveals the percentage of revenue remaining as net income after all expenses have been deducted, has ranged from 1.91% to 2.85%. This metric suggests Walmart's success in generating profits relative to its total revenue, taking into account all expenses including taxes.
Overall, while there have been some fluctuations, Walmart Inc has maintained reasonable profitability levels over the years, showcasing its ability to effectively manage costs and generate profits.
Return on investment
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.25% | 10.70% | 8.39% | 10.59% | 8.93% |
| Return on assets (ROA) | 7.45% | 6.15% | 4.80% | 5.58% | 5.35% |
| Return on total capital | 31.90% | 32.21% | 24.96% | 31.16% | 28.14% |
| Return on equity (ROE) | 21.36% | 18.50% | 15.23% | 16.42% | 16.62% |
Walmart Inc's profitability ratios have shown an overall positive trend over the years.
- Operating Return on Assets (Operating ROA) has increased from 8.93% in January 2021 to 11.25% in January 2025, indicating the efficiency of using assets to generate operating income has improved.
- Return on Assets (ROA) has also demonstrated growth, rising from 5.35% in January 2021 to 7.45% in January 2025. This suggests that the company has been generating more profit from its assets over time.
- Return on Total Capital has been promising, exhibiting an upward trend from 28.14% in January 2021 to 31.90% in January 2025. This implies that Walmart has been effective in utilizing both debt and equity to generate profits.
- Return on Equity (ROE) has also seen a steady increase, climbing from 16.62% in January 2021 to 21.36% in January 2025, reflecting the growth in shareholder value over the years.
Overall, Walmart Inc's profitability ratios indicate strong performance and effective management in generating profits relative to its assets, capital, and equity.